abs-cbn corporation · i, maalaala mo kaya, tv patrol (weekday), wansapanataym, donaire vs....
TRANSCRIPT
ABS-CBN Corporation Sgt. Esguerra Avenue, Quezon City, Philippines
15 November 2012 Securities and Exchange Commission Attn: Director Justina F. Callangan Corporate Finance Department SEC Building, EDSA, Mandaluyong City Philippine Stock Exchange, Inc. Attn: Ms. Janet A. Encarnacion
Head, Disclosure Department 3rd Floor, Philippine Stock Exchange Plaza Ayala Triangle, Ayala Avenue, Makati City
Subject: Investor Briefing Materials Gentlemen / Ladies:
Please find attached materials presented in our briefing this afternoon Very truly yours, Paul Michael V. Villanueva Compliance Officer for Corporate Governance
PRESS RELEASE
Release Date : FOR IMMEDIATE RELEASE Reference : Paul Michael Villanueva, Head, Treasury and Compliance Officer
Tel : 415.2272 local 4322 Email : [email protected]
ABS-CBN’s recurring income for nine months up by 10% fuelled by strong advertising revenues and consumer sales Quezon City, Philippines (November 15, 2012) – The consolidated net income of ABS-CBN Corporation (“ABS-CBN” or the “Company”) (PSE: ABS, ABSP), the country’s largest multimedia conglomerate, registered P1.555 billion for the first nine months of 2012, down by 31% compared with P2.240 billion in the same period last year. Removing the effects of the gain from the sale of Sky Cable PDRs recognized in the first nine months of 2011 amounting to P825 million, net income increased by 10%. The growth in recurring income was fuelled by strong advertising revenues and consumer sales in the third quarter. ABS-CBN generated consolidated revenues of P24.0 billion from advertising and consumer sales for the first nine months, a 13% increase compared to the same period last year. ABS-CBN’s advertising revenues reached P14.5 billion in the first nine months of the year, an
increase of 8% from a year ago. Consumer sales for the nine month period amounted to P9.5
billion, posting a 21% increase. Sky Cable continues to be a major driver of growth with
revenues increasing by 29% to P4.1 billion. The growth in revenues is partly attributable to the
full quarter effect of the acquisition of Destiny Cable.
Total operating and other expenses increased by 14% year-on-year to P19.4 billion brought
about by increases in production costs, cost of sales and services , and general and
administrative expenses.
Capital expenditure and film and program rights acquisition for the nine month period amounted to P3.5 billion, 8% higher than the level of spending for the same period last year. ABS-CBN maintained its national audience share and ratings leadership for Urban and Rural
audiences with prime-time audience share averaging 49% in the third quarter of 2012, a 21
percentage point lead over GMA’s, based on the Kantar National TV Ratings.
For the third quarter, 16 of the company’s shows were in the Top 20 for Total Philippines
(Urban and Rural), with the following occupying the Top 10 slots: Walang Hanggan, Princess &
I, Maalaala Mo Kaya, TV Patrol (Weekday), Wansapanataym, Donaire vs. Mathebula, Pinoy Big
Brother Teen Edition, Rated K Handa na ba Kayo?, Kapamilya Deal or No Deal and Goin’ Bulilit.
ABS-CBN Film Productions, Inc. released 12 films in the first nine months of 2012. Six of them–
Enteng ng Ina Mo, Segunda Mano, Unofficially Yours, Kimmy Dora and the Temple of Kiyeme,
The Healing and The Mistress –topped P100 million in box office receipts, earning blockbuster
status by local standards. Enteng ng Ina Mo and The Mistress grossed more than P200 million.
--- About ABS-CBN Corporation ABS-CBN Corporation is the leading Philippine entertainment and information multimedia conglomerate. In the Philippines, ABS-CBN produces a wide variety of engaging world-class entertainment programs in several genres and balanced credible news programs that are aired on free-to-air TV via Channels 2 (VHF) and 23 (UHF) and a regional network of TV and radio stations nationwide. It also provides news and entertainment programming for nine channels on cable TV. The Company owns the leading film and music production and distribution outfit in the Philippines, and has interests in cable TV, Internet and mobile services, and glossy-magazine publishing. It brings its content to worldwide audiences via cable, satellite and the Internet, primarily through ABS-CBN Global’s The Filipino Channel (TFC).
Nine Months Ended September 30, 2012 Financial & Operating Results
The Chronicle Lounge 14/F Eugenio Lopez Jr. Communications Center
Eugenio Lopez Ave., Q.C. 15 November 2012
13%
Consolidated Gross Revenues
13,372 14,496
7,857 9,521
-
5,000
10,000
15,000
20,000
25,000
30,000
9M11 9M12Airtime Revenues Consumer Sales
21,229 24,017
in Php Millions
2
40%
60%
37%
63%
Without the incremental revenues from growth initiatives, revenues grew by 11%
Consolidated Advertising Revenues in Php Millions
8% YoY
0
3,000
6,000
9,000
12,000
15,000
9M2011 9M2012
13,372 14,496
3
43
49
3128
1211
ABS-CBN GMA TV 5
National Ratings – Total Philippines (Urban + Rural)
4
Total Day Audience Share Evening Primetime Audience Share
Kantar Media/TNS National Philippines TV Audience Shares
(3rd Quarter 2012)
Kantar Media/TNS National Philippines (Urban+Rural)
3Q 2012
Top 20 Programs
Rank Channel Program Ratings
1 ABS-CBN WALANG HANGGAN 37.92 ABS-CBN PRINCESS AND I 36.83 ABS-CBN MAALAALA MO KAYA... 35.7
4-5 ABS-CBN TV PATROL WEEKDAY 32.04-5 ABS-CBN WANSAPANATAYM 32.06 ABS-CBN DONAIRE VS MATHEBULA 27.57 ABS-CBN PINOY BIG BROTHER TEEN EDITION 4 SATURDAY 26.68 ABS-CBN RATED K HANDA NA BA KAYO? 26.39 ABS-CBN KAPAMILYA DEAL OR NO DEAL 25.1
10 ABS-CBN GOIN' BULILIT 23.711 ABS-CBN ARYANA 23.112 ABS-CBN BE CAREFUL WITH MY HEART 21.913 ABS-CBN LORENZO'S TIME 21.414 GMA PEPITO MANALOTO ANG TUNAY NA KUWENTO 21.1
15 ABS-CBN THE X FACTOR PHILIPPINES SATURDAY 20.316 ABS-CBN SARAH G LIVE 20.2
17-18 ABS-CBN TV PATROL WEEKEND SUNDAY 18.217-18 GMA KAP'S AMAZING STORIES 18.2
19-20 GMA KAPUSO MO, JESSICA SOHO 17.9
19-20 GMA 24 ORAS WEEKDAY 17.9
Consumer Sales in Php Millions
21% YoY
0
2,000
4,000
6,000
8,000
10,000
9M2011 9M2012
7,857
9,521
6
Without the incremental revenues from the growth initiatives, consumer sales increased by 15%.
Consumer Sales
7
7,857
3,5743,192
1,091
9,521
3,5614,127
1,833
0
2,000
4,000
6,000
8,000
10,000
Total ConsumerSales
ABS-CBN Global SkyCable Other Subs
9M2011 9M2012
in Php Millions
21% YoY
0% YoY 29% YoY
68% YoY
ABS-CBN Global
8
• REVENUES: 1% increase in terms of USD, flat in Php
• Viewer count remained flat year on year
• Continued growth in Canada, Asia Pacific, Australia and North America
Sky Cable
Strong revenue growth, up 29% YoY
• Without Destiny, revenues grew 12%
• Total broadband revenues grew 44%
• Total postpaid cable revenues grew by 29%
9
0
1,000
2,000
3,000
4,000
5,000
9M2011 9M2012
3,192 3,572
0 555
Sky Only Destiny
In Php Millions
29%
Sky Cable Revenues
ABS-CBN Film Productions 6 of 12 films released in January to September 2012 broke past the
Php 100 million mark in gross box office receipts
10
2 movies grossed more than Php 200 million
11
Operating & Other Expenses in Php Millions
*Without the one-time gain on sale of investments
17,11219,442
0
4,000
8,000
12,000
16,000
20,000
9M2011 9M2012
14%
*
Without the incremental costs from growth initiatives, Operating and Other Expenses grew by 9%.
6,951
5,099 5,046
16
7,626
6,1365,784
-104-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Prod Cost COSS GAEX Others
9M2011
9M201212
Operating & Other Expenses in Php Millions
+10% YoY
+20% YoY +15% YoY
*
*Without the one-time gain on sale of investments
6,951
5,831
1,120
7,626
6,492
1,134
0
2,000
4,000
6,000
8,000
Production Cost Cash Non-cash
9M2011
9M2012
13
Production Cost in Php Millions
10% YoY
11% YoY
1% YoY
5,099
1,683
2,305
1,111
6,136
1,731
2,743
1,662
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Total Cost of Salesand Services
ABS-CBN Global SkyCable Other Subs
9M2011 9M2012
14
Cost of Sales and Services in Php Millions
20% YoY
3% YoY
49% YoY
19% YoY
Without the incremental costs from growth initiatives, COSS grew by 11%.
5,0464,594
452
5,7845,342
442
0
1,000
2,000
3,000
4,000
5,000
6,000
General &Administrative
Expenses
Cash Non-Cash
9M2011 9M201215
General & Administrative Expenses in Php Millions
15% YoY
2% YoY
16% YoY
Without the incremental GAEX from growth initiatives, GAEX grew by 9%.
Consolidated Net Income in Php Millions
31% YoY
16
0
500
1,000
1,500
2,000
2,500
9M2011 9M2012
1,415 1,555
825
Gain from sale
of investments
2,240 Reported Income
10% YoY Recurring Income
Consolidated EBITDA in Php Millions
8% YoY
17
0
1,000
2,000
3,000
4,000
5,000
6,000
9M2011 9M2012
4,714 5,204
917
Gain from sale
of investments
5,631
Reported EBITDA
10% YoY Recurring EBITDA
Cash Capital Expenditure & Film Rights in Php Millions
0
1,000
2,000
3,000
4,000
9M2011 9M2012
3,247 3,505
18
8% YoY
Balance Sheet Accounts End September 30, 2012 vs. December 31, 2011
Total Assets Cash and Cash Equivalents Trade Receivables Day’s Sales Outstanding Total Interest Bearing Debt Shareholders’ Equity Net Debt-to-Equity Ratio
Php 51.0B Php6.8B Php7.5B 88 days Php15.8B Php21.0B 0.43x
14% 21% 18% 5 days 26% 3% 0.24x
Balance Sheet Accounts End September 30, 2012 vs. June 30, 2012
Total Assets Cash and Cash Equivalents Trade Receivables Day’s Sales Outstanding Total Interest Bearing Debt Shareholders’ Equity Net Debt-to-Equity Ratio
Php 51.0B Php6.8B Php7.5B 88 days Php15.8B Php21.0B 0.43x
4% 6% 4% 1day 7% 3% 0.04x
20